Sole Source Justification redacted.doc

Sole Source Justification under $250K PMD Number: FY20-14276 Department: “A” Dept.

Company Name/Brand: Milipower Source, Inc.

Description of Product, Supplies or Services required to meet the agency’s needs:

The procurement is for an Inverter p/n M515-1 that is a modular assembly, which resides in the Canister Electronics Unit (CEU). It consists of electronics for DC-AC power conversion, an EMI enclosure and a structural interface to support the Evolved Sea Sparrow Missile (ESSM).

Identification of Justification Rational:

☐ The Material or service must be compatible will aspects (Form, Fit, and Function) with existing systems presently installed.

☒ A patent, copyright, proprietary data, or licensing agreement limits competition.

☐ These are “direct replacement(s)” parts/components for existing equipment.

☐ Urgency.

Identification of the Justification Rationale Explained: **If using form, fit, and function, describe the current equipment and how the new item/service must coordinate or interface. **If using patent, copyright, proprietary data, describe the proprietary data. **If using direct replacement, describe this below.

The inverter p/n M515-1 is currently part of the Technical Data Package (TDP) and had been tested and integrated in the VLS system. Any other part will not work without vigorous testing to integrate the new part into the system.

Specific Characteristics of the Item or Service required that Limit the Availability to a Sole Source or Brand Name: **This is the most important section. Explain in detail why this company or brand are the only ones that can meet the requirement.

The Original Equipment Manufacturer (OEM) for the Inverter p/n M515-1 is Milpower Source. Milpower Source does not have any distributor. Milpower Source owns the data source for the inverter. An attempt to identify and qualify alternate parts for the manufacturing of VLS equipment that will meet the requirements will cause a substantial duplication of cost to the Government that is not expected to be recovered through competition. Specifically, the Navy would incur a non-recurring cost of $2,000,000.00 in order to identify and qualify alternate sources with the capability to produce the required equipment. The $2,000,000.00 estimate derives from the Baseline VII Tech Refresh efforts from 2011-2016 which included taking steps to ensure that any new sources are capable of producing a product that meets the established performance requirements. This includes the costs for the Government to conduct First Article Tests, Confidence and Functional testing for form, fit and function. Additionally, the software program would have to be modified, and Shock and Vibration testing would need to be performed. If an alternate part is determined to be qualified, then additional resources would be required as all applicable documentations will need to be updated through Engineering Change Process (ECP) to introduce the new alternate part. Without the required Milpower Source inverter, the Government cannot have a functional CEU, which will degrade the state of the system, and directly affect the fleet’s capability to launch missiles.

Market Research Conducted:

The Government had reached out through google search and know vendors, but could not locate other sources or authorized distributor who will sell the inverter p/n M515-1. Milpower Source.

Statement of Actions, if any to Remove Barriers to Competition in the Future:

NSWC PHD Contracts Office will continue to conduct market research as warranted to provide a broader vendor base as applicable for the types of supplies/services covered by this document. If another potential source emerges, NSWC PHD will assess whether competition for future requirements is feasible.

Contracting Officer:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer Signature:

Signature Print Name, Title and Code Phone No. Date